Holcim Philippines reports strong Quarter1 2019 performance

15 May 2019
 

 

  • Cement and aggregates prices continue to recover 
  • Operating Ebitda up 35%; slight increase of net profit due to higher interest expense from funding capital projects

John Stull, President and CEO of Holcim Philippines, Inc. said: “I am very pleased to share that we have successfully followed up our strong finish in 2018 with an excellent start of the year. This confirms the effectiveness of our plans to deliver profitable growth and sustainable returns. “Our focus on raising profitability through tighter cost management, improved operational efficiency and commercial innovation continues to pay off as seen in our business results, and we are determined to build on these further. We will continue to execute with precision to deliver on shareholders’ expectations and become a stronger partner in the country’s progress.”

 

FINANCIAL PERFORMANCE

In Q1 2019, sustained public and private construction enabled Holcim Philippines to improve prices for its cement and aggregates offerings. The company also completed expansion project in its La Union plant, which included a tie-in of a new roller press to the finish mill that temporarily affected production volumes for North Luzon. As a result, Company’s revenues dipped by 5.8% year-on-year to Php 8.1 billion. Operating Ebitda surged by 35% to Php 1.7 billion while EBITDA margins rose to 20.8% from 14.6% on a year-on-year basis due to operational efficiencies and lower costs in plants, optimized distribution and streamlined business operations. Net profit grew slightly to Php 704 million due to higher interest expense for funding capital projects. 

 

KEY DEVELOPMENTS

In March, Holcim Philippines introduced Solido, a new high-performance blended cement to provide a better alternative to ordinary Portland cement for local builders undertaking major projects. Customers received Solido positively for its performance advantages and environmental benefits. 

 

KEY FIGURES (IN THOUSANDS)

 

First Quarter

 

January-March 2019

January-March 2018

Net Sales

Php 8,103,491

Php 8,604,154

Operating EBITDA

Php 1,687,350

Php 1,253,189

Net Profit

Php 703,861

Php 699,890

*For more information on our financial performance this quarter, you may check our page at the Philippines Stock Exchange website or the section on disclosures on our Company’s website.